NasdaqGS:BLDR

Stock Analysis Report

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Market Cap

US$8.9b

Last Updated

2021/06/18 02:04 UTC

Data Sources

Company Financials +

Executive Summary

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. More Details


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Builders FirstSource's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BLDR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BLDR's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

BLDR

-1.6%

US Building

-0.2%

US Market


1 Year Return

94.6%

BLDR

76.5%

US Building

39.4%

US Market

Return vs Industry: BLDR exceeded the US Building industry which returned 76.8% over the past year.

Return vs Market: BLDR exceeded the US Market which returned 39.9% over the past year.


Shareholder returns

BLDRIndustryMarket
7 Day0.8%-1.6%-0.2%
30 Day-6.2%-0.6%3.1%
90 Day-6.3%5.9%5.6%
1 Year94.6%94.6%78.8%76.5%41.7%39.4%
3 Year126.2%126.2%92.9%76.4%59.7%49.9%
5 Year267.2%267.2%130.3%97.8%122.6%97.6%

Long-Term Price Volatility Vs. Market

How volatile is Builders FirstSource's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Builders FirstSource undervalued compared to its fair value and its price relative to the market?

45.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BLDR ($43.33) is trading below our estimate of fair value ($79.07)

Significantly Below Fair Value: BLDR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BLDR is good value based on its PE Ratio (12.6x) compared to the US Building industry average (26.2x).

PE vs Market: BLDR is good value based on its PE Ratio (12.6x) compared to the US market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: BLDR is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BLDR is good value based on its PB Ratio (1.8x) compared to the US Building industry average (2.8x).


Future Growth

How is Builders FirstSource forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLDR's forecast earnings growth (8.8% per year) is above the savings rate (2%).

Earnings vs Market: BLDR's earnings (8.8% per year) are forecast to grow slower than the US market (15.5% per year).

High Growth Earnings: BLDR's earnings are forecast to grow, but not significantly.

Revenue vs Market: BLDR's revenue (0.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: BLDR's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BLDR's Return on Equity is forecast to be low in 3 years time (14.2%).


Past Performance

How has Builders FirstSource performed over the past 5 years?

34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLDR has high quality earnings.

Growing Profit Margin: BLDR's current net profit margins (4.4%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: BLDR has become profitable over the past 5 years, growing earnings by 34.4% per year.

Accelerating Growth: BLDR's earnings growth over the past year (145%) exceeds its 5-year average (34.4% per year).

Earnings vs Industry: BLDR earnings growth over the past year (145%) exceeded the Building industry 23%.


Return on Equity

High ROE: BLDR's Return on Equity (9.6%) is considered low.


Financial Health

How is Builders FirstSource's financial position?


Financial Position Analysis

Short Term Liabilities: BLDR's short term assets ($3.6B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: BLDR's short term assets ($3.6B) exceed its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: BLDR's debt to equity ratio (33.4%) is considered satisfactory.

Reducing Debt: BLDR's debt to equity ratio has reduced from 1427.8% to 33.4% over the past 5 years.

Debt Coverage: BLDR's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: BLDR's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Dividend

What is Builders FirstSource current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BLDR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BLDR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BLDR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BLDR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BLDR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Dave Flitman (56 yo)

0.17

Tenure

Mr. David E. Flitman, also known as Dave, serves as the Chief Executive Officer at Builders FirstSource, Inc. since April 1, 2021. Mr. Flitman serves as President at Builders FirstSource, Inc since January...


Leadership Team

Experienced Management: BLDR's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: BLDR's board of directors are seasoned and experienced ( 15.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 77.6%.


Top Shareholders

Company Information

Builders FirstSource, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Builders FirstSource, Inc.
  • Ticker: BLDR
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$8.913b
  • Shares outstanding: 207.13m
  • Website: https://www.bldr.com

Number of Employees


Location

  • Builders FirstSource, Inc.
  • 2001 Bryan Street
  • Suite 1600
  • Dallas
  • Texas
  • 75201
  • United States

Listings


Biography

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, r...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 02:04
End of Day Share Price2021/06/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.